R. K. Narayan is not a social critic. His primary aim is to present the true picture of society as he finds it. The picture of society is presented in a humorous and ironic way. He is not a chronicler and he does not inform us about the social problems of India or Malgudi but while he presents the realistic background of the novel these problems get referred to.
The people of Malgudi go on changing in their social outlook, and so the social values go on changing for them both individually and group wise. Raju and Gaffur change on account of urbanization and modernization of Malgudi. The life of Malgudi changes due to the arrival of train. The change is not sudden but gradual. The people of Malgudi get changed but the villagers remain unaffected. They are still superstitious and ignorant. No doubt the government is aware of increasing facilities of transport and communication of villages, but still the change does not take place there. They are poor. There are no schools in the villages. They are illiterate. They are superstitious and have blind faiths.
The masses are credulous and easily duped by the fake sadhus and mahatmas like Raju. Raju is a hypocrite. He is a fake saint. He cheats the people of village Mangala. The most of the people of Malgudi are poor. They are low shopkeeper, low wages earners or workers. They cannot hoard money to educate their children. Raju remains uneducated as his father has no money to educate him.
The problem of maladjustment in marriage as in the case of Marco and Rosie is dealt with in The Guide in all details. They face the problem of solitude though they are husband and wife. Marco is devoted to scholastic pursuits and Rosie is devoted to dancing. Rosie is the daughter of a devdasi—a temple dancer. Marco marries her to help her rise in her social status. Her love for dance does not leave her; and dancing is prostitution for Marco. The result is the maladjustment between the two. Somehow Raju comes in contact with Rosie, becomes her impresario and she perfects her art of dancing and becomes a famous dancer. Rosie is flesh and blood woman; she demands attention from Marco to her womanhood and sex while Marco is a great scholar. Raju gives all this to Rosie that Marco fails to give her. She is seduced by Raju and they both live as husband and wife. At this stage Raju's mother gets separated from the son and faces the same solitude. She longs to see Raju until her death. This problem of solitude is the product of modern and western India.
There is change taking place in the traditional life of Malgudi or India. Raju's mother is old fashioned and traditional and does not like Raju's living with Rosie as his mistress. She leaves the house and goes away with her brother. Sensual love has been imported to India from the west. Rosie and Raju after the departure of Raju's mother, enjoy it, and live like husband and wife. But at heart the characters of The Guide are Indians, Rosie does not forget her husband. Amidst the caresses of Raju she declares that she should go to her husband because she still respects him. The characters of the novel are unable to shake off the traditional social values and accept the new western culture. Hence there is much confusion.
The evils of litigation and the high fees of lawyers are also dealt with in The Guide. Raju is charged for forging the signature of Rosie and is convicted. For his trial Rosie arranges a large sum of money. The sinners and cheats are punished either by law or nature. Raju is imprisoned for forgery and punished with death for playing the role of the fake Swami.
The problem of misunderstanding is also revealed in the novel. The art and culture get commercialized. The result is they suffer for it. Art is for art's sake and if it is sold for money, it is art no more.
The modernization and linking of Malgudi with other parts of the country make the life of the people of Malgudi disturbed and miserable. Commercialism, greed and money minded enter Malgudi. It is under the impact of greediness that Raju commits forgery and is condemned to jail and doomed forever. Money is the great corrupter. Wealth corrupts society, it is well shown by the novelist in The Guide.
The simple minded people, like Raju, misunderstand bureaucrats. They are machines in the hands of administration. They are unfeeling and indifferent to emotions. They love superficial life and style. Human values have no importance for them. They are invited to take part in the railway ceremony at Malgudi. Raju earns money, becomes rich and takes pride in making friends with them. He plays cards with them. But when the Superintendent of Police comes to arrest him, he greets him and regards him as being friendly with him, but he shows no mercy. He has mechanical nature.
The Guide is a tragedy based on social values and norms which are passing through transition. Old social norms and values are unable to break off; the new social norms due to the impact of western culture have not established themselves. They influence the people but are unable to supersede the old ones. The social problems have been presented in The Guide frankly and boldly, yet the novel is a great piece of art not due to the social problem dealt with in, but the artistic presentation of the life of the hero Raju, the guide makes it a great work.